I found posts like this to be helpful when I was first learning about investing in real estate, so hopefully someone on here can get something out of it.Our goals were to cash flow $100 per month per door, have a cash-on-cash ROI of 12%, and achieve a total return of 20%.Purchase price: $179,900Our loan is a 30-year fixed rate residential mortgage at 4.25%25% Downpayment: $44,975Mortgage Payment (Principal & Interest): $663.75Operating Income$26,435 scheduled gross rents (4 units)$(1001) vacancy$600 garage rent$11 interest$26,045 gross operating incomeOperating ExpensesProperty Management (10% of gross rents): $(2543)Leasing fee for new tenant placement: $(550)Sewer: $(1397)Water & Trash: $(1232)Lawn care/mowing: $(350)Gas & electric during vacancy: $(228)City occupancy inspection aka government extortion fees: $(183)Maintenance & Repairs: $(3594)Property Taxes: $(2009)Insurance: $(983)$(13,069) gross operating expenseNet Operating Income: $12,976Mortgage P&I: $(7965)Cash Flow Before Taxes: $5,011Cash-on-cash return: 11%Equity Accrued: $2275Total Return: $7286Total ROI: 16%We hit our cash flow number almost exactly at $104 per door while our ROI and total return came in a little under our projections, but pretty damn close.

Personally I look at the $500 as insurance, or knowing that I have someone to talk to if issues do arise. 

You have home insurance on the property and paying it, right?

My payment for each of these two are $1350 each including insurance and taxes.  

We tried to minimize risk with renting to high quality military NCO/officer, good property managers, friendly neighbors for eyes on property, maintenance insurance, money in savings, and long term hold for time to gain the equity and have rents rise over time (which haven't actually risen as much as I'd thought).Sorry for the long note, but that is our single family rental  experience as a military member using VA loans from 2002 until now.Cheers!

I was able to go through a little hassle and also about $1000 for an insurance surety bond to get a lost title issued.

Verification:Rental of Other Property Not Securing the VA Loan Obtain the following: documentation of cash reserves totaling at least 3 months mortgage payments (principal, interest, taxes, and insurance - PITI), and individual income tax returns, signed and dated, plus all applicable schedules for the previous 2 years, which show rental income generated by the property.

Also note that any reimbursement from insurance will affect if you have a loss (or potentially a gain). 

Tenant would like me to use my insurance to pay to have it cleaned up but it didnt hit the home, so my homeowners insurance doesnt come into play.

Plus it would save him money if I paid his taxes, insurance and HOA fees.What would be a good deal to offer him since he has no mortgage and is unmotivated to move in any direction?